Industry experts and advocacy groups are urging the government to reduce the tax burden on Nigeria’s housing sector, warning that excessive and multiple levies are impeding development.
During a two-day workshop in Ogun State, Bisi Adedire, President of the Association of Town Planning Consultants of Nigeria, criticized the current tax system. “The burden hurts property developers, especially when they’re compelled to pay everything upfront while construction has not started on their plots of land. The Federal Government should look into it and adopt a system that would be beneficial to all stakeholders,” he said.
Olorunyomi Alatise, an estate surveyor, pointed out that the complexity and volume of taxes required for property documentation discourage new entrants. “By the time they itemise the different taxes you are to pay, you find out that it is a lot for someone that just acquired a property,” he added.
The Housing Development Advocacy Network (HDAN) has also called for tax relief measures in the proposed 2024 Nigeria Tax Bill, particularly for social housing and building materials, to make affordable housing more accessible.
Recent government reforms are expected to harmonise taxes and provide relief to developers, potentially boosting investment and addressing the nation’s housing shortfall.
